Oil prices climbed above $108 a barrel after drone attacks forced Saudi Arabia to close its east-west crude pipeline, with the Guardian attributing the strikes to Iran-linked Houthi rebels.
Key facts
- Brent crude surged to more than $108.5 a barrel on Monday, a 3.7% daily increase, according to the Guardian.
- Drone attacks forced Saudi Arabia to close its east-west crude pipeline, the Guardian reported.
- The Guardian attributed the attacks to Iran-linked Houthi rebels.
- The rebels also captured a strategic island in the Bab al-Mandab strait, per the Guardian.
Oil prices have climbed above $108 a barrel after a series of drone attacks forced Saudi Arabia to close its east-west crude pipeline, according to the Guardian. Brent crude, the international benchmark for oil prices, surged to more than $108.5 a barrel on Monday, a 3.7% increase on the day.
The Guardian reported that the strikes were carried out by Iran-linked rebels, identified as the Houthis. The attacks targeted Saudi infrastructure, prompting the closure of the east-west pipeline that moves crude across the kingdom.
In addition to the pipeline strikes, the rebels captured a strategic island in the Bab al-Mandab strait, according to the Guardian. The strait is a significant maritime chokepoint for global shipping and energy flows.
The Guardian said the combination of the pipeline closure and the developments in the Bab al-Mandab strait contributed to the sharp rise in the price of Brent crude on Monday. Further details of the situation were still developing.
Why it matters
Sharp swings in oil prices ripple through the global economy, affecting fuel costs, transport and inflation. Disruptions to major Saudi infrastructure and a strategic maritime chokepoint like the Bab al-Mandab strait can heighten concerns about energy supply security worldwide.
Frequently asked questions
How high did oil prices rise?
Brent crude surged to more than $108.5 a barrel on Monday, a 3.7% increase on the day, according to the Guardian.
What caused the oil price increase?
According to the Guardian, a series of drone attacks forced Saudi Arabia to close its east-west crude pipeline, driving prices higher.
Who was behind the attacks?
The Guardian reported the attacks were carried out by Iran-linked Houthi rebels, who also captured a strategic island in the Bab al-Mandab strait.